TITLE 40.SOCIAL SERVICES AND ASSISTANCE

Part 9. TEXAS DEPARTMENT ON AGING

Chapter 260. AREA AGENCY ON AGING ADMINISTRATIVE REQUIREMENTS

40 TAC §260.11

The Texas Department on Aging proposes an amendment to §260.11, concerning Ombudsman Services.

The amendment is necessary to simplify and remove unnecessary language, remove references to certain program procedures, eliminate references to program performance measures that are now included in the proposed rule, remove direct statements from federal requirements where they are referenced in the rule, reference the risk assessment process that will be implemented for AAAs to determine the level of facility coverage, and include updated names for the Department and other organizations in accordance with the Department's merging into the Department of Aging and Disability Services.

Nila Pedersen, Chief Accountant, has determined that for the first five-year period the rule is in effect there will be no fiscal implications for individuals required to comply with the rule as proposed.

Ms. Pedersen also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be an updated rule. There will be no effect on small or micro businesses. There will be no effect to individuals required to comply with the section as proposed. There will be no effect to state or local government.

Comments on the proposal may be submitted to Gary Jessee, Director Office of AAA Support and Operations, Texas Department on Aging, P.O. Box 12786, Austin, Texas 78711. All comments must be written and delivered via mail, in person, or facsimile. E-mail and verbal comments cannot be accepted. All comments must be received within 30 calendar days following the date of publication of the proposed rules in the Texas Register .

The amendment is proposed under Texas Government Code, §2161.003, which provides the Texas Department on Aging with the authority to promulgate rules governing the operation of the Department.

The amendment also implements or affects Texas Human Resources Code, Subchapters C and D, and §101.022(b) and §101.022(d). The amendment implements Titles III and VII of the Older Americans Act of 1965, as amended, 42 U.S.C.A., §§3001, et seq. (West 2002).

§260.11.Ombudsman Services.

(a) Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Advocacy--Actions by or on the behalf of individuals and groups to ensure that they receive the benefits and services to which they may be entitled, and to ensure that their rights guaranteed by law are protected and enforced.

[ (2) Advocacy plan--An action plan developed to address the needs and quality of care issues of residents that are developed at the state, regional and individual nursing home levels.]

(2) [ (3) ] Assisted Living Facility--An establishment, including a board and care home, that furnishes, in one or more facilities, food and shelter to four or more persons who are unrelated to the proprietor of the establishment and provides personal care services under the scope of Health and Safety Code, Chapter 247.

[ (4) Board--The Board on Aging of the Texas Department on Aging. ]

(3) [ (5) ] Certified staff ombudsman--An individual who has successfully completed the required certification training as prescribed by the Office and who has been recommended by the local ombudsman entity and approved by the State Long-Term Care Ombudsman to serve as an advocate for long-term care facility residents and who has been hired by the local ombudsman entity as paid staff to participate in the administration of the ombudsman program. A certified staff ombudsman shall be a representative of the Office.

(4) [ (6) ] Certified volunteer ombudsman--An individual who has successfully completed the required certification training as prescribed by the Office and who has been recommended by a local ombudsman entity and approved by the State Long-Term Care Ombudsman to serve as an advocate for long-term care facility residents and participate in the ombudsman program. A certified volunteer ombudsman shall be a representative of the Office.

(5) [ (7) ] Clients or recipients of services--Residents of long-term care facilities.

(6) [ (8) ] Contractor--The performing entity in a contract with the Department. The word contractor when used in this rule and related policies and procedures is synonymous with grantee or other entities as defined by the Board, by rule or order.

(7) [ (9) ] Conflict of interest--Status of an individual applying to be a certified volunteer ombudsman must be revealed to the Office of the State Long-Term Care Ombudsman and resolved prior to service. A conflict of interest exists if an individual applying to be a certified volunteer ombudsman or an immediate family member (first degree of consanguinity or affinity) of that individual has any one or more of the following:

(A) direct involvement in the licensing or certification of a long-term care facility or of a provider of a long-term care service;

(B) ownership or direct investment interest in a long-term care service;

(C) is employed by or participates in the management of a long-term care facility;

(D) receives or has the right to receive, directly or indirectly, remuneration under a compensation arrangement with an owner or operator of a long-term care facility; or

(E) has a family member residing in a long-term care facility in which the representative is assigned or provides advocacy.

(8) [ (10) ] Department--The Texas Department of [ on ] Aging and Disability Services (DADS), the single state agency for Older Americans Act (OAA) programs.

(9) Facility Coverage--In-person visit by a certified volunteer or staff ombudsman that involves contact with residents, families, facility staff or others to identify and resolve complaints and to help protect residents' health, safety, welfare and rights.

(10) [ (11) ] Friendly Visitor--A volunteer who has a relationship with the local ombudsman entity but who does not participate in complaint resolution. A Friendly Visitor receives orientation and training as prescribed by the Office but does not receive certification, is not a representative of the Office and shall not have access to resident records. This is an optional program operated at the discretion of the local ombudsman entity.

(11) [ (12) ] In-service--A planned educational effort conducted or coordinated by professional staff or certified volunteers.

(12) [ (13) ] Local ombudsman entity--An area agency on aging or other entity, as defined by the Board, by rule or order which is responsible for implementation of all aspects of the local ombudsman program as defined in these rules.

(13) [ (14) ] Long-term care facility--A facility that is licensed or regulated or that should [ is required to ] be licensed or regulated by the Texas Department of Aging and Disability [ Human ] Services.

(14) [ (15) ] Managing local ombudsman--The professional staff person at the regional level who directs the local ombudsman program. A managing local ombudsman is a certified staff ombudsman and shall be a representative of the Office.

(15) [ (16) ] Nursing home--An institution that provides organized and structured nursing care and service, and is subject to licensure under the Health and Safety Code, Chapter 242.

(16) [ (17) ] Office--The Office of the State Long-Term Care Ombudsman, an independent division of the Texas Department of [ on ] Aging and Disability Services .

(17) [ (18) ] Ombudsman intern--A volunteer who has been admitted to the local training program as a potential certified volunteer ombudsman.

[ (19) Professional--Refers to an individual who has obtained a four-year bachelor degree in aging-related areas or human services, or has equivalent qualifying experience as a substitute for a degree. Such substitution shall be consistent with the employing entity's personnel policies.]

(18) [ (20) ] State Long-Term Care Ombudsman, also known as the State Ombudsman--The person designated by the [ Executive Director of the ] Department as Chief Administrator of the Office of the State Long-Term Care Ombudsman, in accordance with the requirements of the Older Americans Act [ , regarding expertise and experience. ] The State Ombudsman is accountable to the [ Executive ] Director , Center for Consumer and External Affairs of the Department for program and personnel matters.

(b) Purpose. The purpose of this rule is to ensure [ assure ] the development and operation of an ombudsman program, which advocates for the rights of residents and their families to receive the highest quality of care and quality of life in long-term care facilities and which provides services to assist in protecting the health, safety and welfare of residents.

(c) Philosophy and Program Outcomes . Persons who are unable to care for themselves are entitled to dependable and consistent care that includes:

(1) a safe and healthy environment;

(2) satisfaction of nutritional needs;

(3) medical services, including physical, mental and psychosocial rehabilitation;

(4) an environment that promotes and maintains the individual's dignity, self-determination, communication and protection of individual rights.

(d) Eligibility. Residents of long-term care facilities aged 60 and above are eligible for Ombudsman services. Residents who are under 60 years of age and require advocacy services may be served if the advocacy effort benefits 60-year-old and older residents.

(e) Access. The Office shall ensure [ assure ] that Office representatives (employees or volunteers who represent an entity designated by the Department [ managing local ombudsmen and certified staff ombudsmen ] shall be granted access to long-term care facility residents and their records if consent of the resident or the legal representative of the resident is obtained or as permitted by the Older Americans Act and state statute [ as defined in Ombudsman procedures ].

(f) Responsibilities of contractors to operate local ombudsman entities. Contractors shall be either an area agency on aging or an entity designated [ defined ] by the Department [ Board ]. The local ombudsman entity shall:

(1) be an organization with a responsive and visible presence in its region. It shall:

(A) perform the duties as outlined in the OAA consistent with these rules and guidance provided [ the procedures required ] by the Office:

(i) provide services to protect the health, safety, welfare and rights of residents;

(ii) ensure that residents have regular, timely access to representatives of the program and have timely responses to complaints and request for assistance;

(iii) identify, investigate and resolve complaints made by or on behalf of residents that relate to action, inaction, or decisions, that may adversely affect the health, safety, welfare, or rights of the residents;

(B) be an expert and reliable source of information for families seeking information on long-term care options [ placement ] or general requests for assistance;

(C) develop a facility coverage plan based on Ombudsman complaint/program experience and as a minimum consider nursing facilities ranked at 50 or less in the DADS Quality Reporting System (QRS) overall rating and consider fragile operating facilities that have trustee placement or are scheduled to close as reported by DADS Long-Term Care Regulatory. Coverage plans showing weekly, monthly and quarterly visitation schedules will be submitted to the Office on a quarterly basis or more frequently if requested by the Office in a format developed in cooperation with the network. The minimum coverage schedule for stable operating facilities shall be quarterly [ have a visible and active presence in long-term care facilities sufficient for clients and families to have access to ombudsman services that promote or improve quality of care and that result in the timely identification and resolution of complaints and concerns. In addition to regular visits by certified ombudsmen, each licensed nursing home shall be visited a minimum of one time, and more often as necessary, each year by the managing local ombudsman or a paid staff ombudsman of the local ombudsman entity. The local ombudsman entity may establish affiliations with other volunteer groups to exchange information and identify advocacy needs to support facility coverage ].

(D) coordinate with state, regional and local agencies and be recognized as an active member in the continuum of care in the communities it serves;

(E) have a mutually positive referral relationship with the Department's Long-Term Care Regulatory [ Texas Department of Human Services ] and the Texas Department of Family and Protective [ and Regulatory ] Services; and

(F) be a catalyst for community involvement in long-term care facilities and be viewed as a credible source of information for the community, the regulatory system, and the nursing home industry;

(2) appoint the managing local ombudsman who shall oversee the local ombudsman program and provide leadership in a manner that achieves program goals and objectives. [ meet the requirements of a professional. In addition, two years of direct services to the elderly or experience in ombudsman services, advocacy, dispute resolution, or volunteer management are preferred. ]

[ (3) have adequate staff to manage all aspects of the program and shall designate the managing local ombudsman.]

(3) [ (4) ] establish and maintain a complaint management system that at a minimum shall:

(A) obtain or provide training to interns and certified volunteer ombudsmen on handling complaints and dispute resolution;

(B) have an intake process for receiving complaints that begins within two business days of receipt and as soon as possible for emergency and safety situations ;

(C) have a written process for certified volunteer ombudsmen to identify and investigate complaints and concerns with referral to the managing local ombudsman or his/her designee when assistance is needed;

(D) have a written process for [ equitably ] resolving total complaints that results in a minimum percentage, as defined by the Office, of complaints resolved in an objective and impartial manner ;

(E) have a process for reporting complaint activity as required by the local ombudsman entity and the Office; and

(F) have a written process to assure that complaint and client-oriented material remain confidential and is protected from access by unauthorized persons.

(4) [ (5) ] establish mechanisms [ a process ] to identify and remove conflicts of interest [ as prescribed in procedures established by the Office ];

(5) [ (6) ] establish and maintain a volunteer management system, if the local program uses volunteers, in which the local Ombudsman entity shall:

(A) analyze the number of volunteers needed for administrative duties, other activities, and facility coverage;

(B) recruit individuals to become certified volunteer ombudsmen using all appropriate means and conduct appropriate follow-up with individuals who expressed interest [ so that the total number of certified staff and volunteer ombudsmen are at least the number prescribed by the Legislative Budget Board of the Texas Legislature ];

(C) process applicants that includes [ through the completion of an application that contains all minimum information required by the Office to include ] the completion of a criminal background check of all volunteer and paid staff ombudsmen prior to certification. Supervise the completion of certification training and internship; make recommendation for certification of individuals to the Office [ State Long-Term Care Ombudsman ] and assign certified ombudsmen to appropriate long-term care facilities;

(D) provide state-approved initial certification training and provide 12 hours of local continuing education each federal fiscal year, for certified ombudsmen [ each representative of the Office ];

(E) provide state-approved orientation and training for Friendly Visitors, if such a program is operated by the local ombudsman entity;

(F) support and supervise volunteers and staff involved in the local program during their service;

(G) promote retention through regular communication, recognition, motivational activities, and feedback of satisfaction with program services;

(H) establish and use a grievance and complaint system; and

(I) develop exit procedures to include input from the certified volunteers and staff who leave the ombudsman program and notification to the Office of their status with their written comments.

(6) [ (7) ] ensure [ assure ] that residents, families, and complainants have regular and timely access to ombudsman services [ during the normal business week ] at no cost through a toll-free number or acceptance of collect calls. [ with acknowledgement of the receipt of the complaint within one business day. The telephone number of the local ombudsman entity and the managing local ombudsman shall be listed under the area agency on aging listing in accordance with current Department policy; ]

(7) [ (8) ] support the development [ formation ] of family and resident councils [ in each facility of the region, in an effort to provide advocacy resources to promote quality of care ];

(8) [ (9) ] provide informational resources relating to quality of care and resident-centered care to residents, family, and facility staff [ of each nursing home in the region ]. Be available to provide in-service training in long-term care facilities in the region. [ Certified volunteer or paid staff ombudsmen may conduct such in-service training ];

(9) [ (10) ] coordinate with regional administrators or their designees of the Department's [ Texas Department of Human Services ] Long-Term Care Regulatory [ Services ] division serving the region at least quarterly, and the Texas Department of Family and Protective [ and Regulatory ] Services as needed, to develop efficient referral, communication, and problem-solving procedures;

(10) [ (11) ] participate in a minimum percentage, as defined by the Office, of survey activities with the [ Texas ] Department [ of Human Services ] in accordance with requirements established by the Office [ the cooperative agreement between the Department and the Texas Department of Human Services ].

(11) [ (12) ] submit program performance and other reports in accordance with requirements established by the Office and the Department; and

[ (13) develop and implement individual nursing home advocacy plans followed by development and implementation of a regional advocacy plan that is based on an analysis of individual nursing home advocacy plans and other sources of information that supports the achievement of the highest levels of quality of care and quality of life for residents;]

(12) [ (14) ] promote local awareness of the ombudsman entity through the frequent use of local and regional resources, including the media, in order to provide visibility to the program . [ , to include listing the phrase, "Advocate for Nursing Home Residents," in all brochures, publications, and media activities; and ]

[ (15) encourage coordination with citizen, membership and advocacy organizations to support quality of care and increase community involvement with and awareness of long-term care services.]

(g) Responsibilities of Certified Volunteer Ombudsmen: A [ certified ] volunteer who has met the requirements of the Office [ ombudsman ] shall execute the purposes of the ombudsman program as outlined in this rule and under the supervision of the managing local ombudsman.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 17, 2004.

TRD-200403338

Gary Jessee

Director of the Office of AAA Support and Operations

Texas Department on Aging

Earliest possible date of adoption: June 27, 2004

For further information, please call: (512) 424-6857


Part 20. TEXAS WORKFORCE COMMISSION

Chapter 815. UNEMPLOYMENT INSURANCE

The Texas Workforce Commission (Commission) proposes amendments to Chapter 815, Unemployment Insurance, Subchapter B, Benefits, Claims and Appeals, §815.15, Parties with Appeal Rights; §815.28, Work Search Requirements; and to Subchapter C, Tax Provisions, §815.109, Payment of Contributions and Reimbursements.

Purpose

The purpose of the proposed amendments is twofold:

To clarify the applicability of the Unemployment Insurance (UI) administrative rules regarding Work Search requirements to certain classifications of UI claimants, by amending §815.15 and §815.28(a)(1), and

To define the due date for payment of additional taxes and interest resulting from a chargeback adjustment by amending §815.109(e).

The Commission proposes amending §815.15, Parties With Appeal Rights, to clarify that employers affected by the proposed §815.28(a)(1)(E)(v) shall be parties of interest in any appeals proceedings resulting from circumstances described in the new clauses.

The Commission proposes amending §815.28, Work Search Requirements, to add three additional classifications of exempted claimants to those listed in subsection (a)(1)(E), and to add a new subsection (a)(1)(F), clarifying the applicability of work search requirements to claimants receiving extended UI benefits and to individuals engaged in efforts to establish themselves in a self-employment venture.

The Commission proposes amending §815.109, Payment of Contributions and Reimbursements, to clarify that if an additional tax results from a chargeback adjustment, the due date for the quarters affected by the adjustment is the first day of the second month following the month in which the Agency mailed the statement or letter notifying the employer of the change in tax rate and additional tax due. The amendment shall also clarify that amounts due shall be paid on or before the last day of this second month.

Background

§815.15. Parties with Appeal Rights.

The Commission proposes to amend §815.15 by adding §815.15(c)(6) in coordination with proposed §815.28(a)(1)(E)(v). For claimants on a temporary layoff of longer than 12 weeks, a waiver from work search requirements may be requested by the separating employer and granted by the Agency Executive Director. The Executive Director's decision in such a case will be subject to review in any benefits appeal where a determination of ineligibility for benefits results from the decision. Proposed §815.15(c)(6) will make the requesting employer a party of interest in any such appeal. The Commission proposes to conform §815.15(c) to eliminate the specific references to paragraphs (1) - (5) and create a general reference to the paragraphs.

Proposed amendments to §815.28(a)(1)(E)

With few exceptions, UI claimants are required as a condition of eligibility to register for Wagner-Peyser job matching and reemployment services. This work registration requirement, often referred to as the "work test" for UI eligibility, is the only specific "work search" requirement for regular UI claimants set out in federal law. As a result, "work registration" and "work search" are closely connected in law and historical precedent. Consequently, the Commission finds that the terms should be applied and treated consistently.

Section 815.28(a)(1)(E) currently includes explicit exemptions to the rule's requirements for two classifications of UI claimants:

(1) Individuals participating in a Shared Work Plan under Texas Labor Code §215.041(c), and

(2) Individuals participating in Agency approved or Trade Act training under Texas Labor Code §207.022 and §207.023.

Section 815.28(a)(1)(E) also excludes individuals otherwise exempted by other law.

Based on other law and historical Commission precedent, three other classifications of UI claimants are exempt from the Wagner-Peyser job matching registration and reemployment services requirement. However, these claimants are not explicitly exempted from the Work Search requirements of §815.28. These three classifications of UI claimants are:

(1) Individuals on temporary layoff with a definite date to return to work, and who are exempt from work registration requirements under §815.20(8)(A);

(2) Individuals who are members in good standing of a union with a nondiscriminatory hiring hall and are exempt from work registration requirements under §815.20(8)(B); and

(3) Individuals performing jury service.

Section 815.28(a)(1)(E)(iii) - (v) Relates to Exemptions from Work Search Requirements for Individuals on Temporary Layoff with a Definite Date to Return to Work.

The Commission proposes to amend §815.28 in order to explicitly exempt from the rule's requirement individuals temporarily laid off but with a definite date to return to work. These individuals are already exempt from the work registration requirement under §815.20(8)(A). The Commission proposes to grant exemptions when:

(a) the individual is on temporary layoff with a definite return to work date, which is eight weeks or less from the layoff date;

(b) the individual is on temporary layoff with a definite return to work date which is no more than 12 weeks from the layoff date, provided that written confirmation of the return to work date is received from the separating employer; and

(c) the individual is on temporary layoff that is more than 12 weeks due to a disaster or other extraordinary circumstances, provided that a waiver from work search requirements is granted by the Agency Executive Director. The Executive Director's decision in such cases will be subject to review in any benefits appeal where ineligibility results from the decision. The requesting employer will be made a party of interest to any such appeal.

While the purpose of work search requirements is to move unemployed workers toward reemployment as quickly as possible, exemptions are warranted in the case where workers are merely temporarily laid off. This is because employers have a substantial investment in their trained employees. The Commission's work search rules should not operate to move the trained worker away from the previous employer or to separate the worker from his soon-to-be reinstated job opportunity. Employers should not be deprived of their investment because of a requirement for the employee to seek other work simply because economic conditions dictate a temporary workforce reduction. Additionally, the claimant worker should not be required, because of attendant work search requirements, to relocate or change occupations during the period between a temporary lay off and the return to work date. Loss of trained workers may also delay the economic recovery of a business, which may in turn delay the recovery of the Texas economy as a whole. An exemption in these cases from work search requirements is therefore in the best interests of the temporarily laid off workers, their employers, and all Texans.

Given the significant interest in exempting workers temporarily laid off and the interest in re-employing claimants as soon as possible, the Commission's longstanding practice is to limit work search exemptions to eight weeks unless the claimant's employer requests a longer exemption period of up to 12 weeks. Employer requests for exemptions of more than 12 weeks are granted only after administrative review. This procedure was developed as a balance between the two objectives:

(1) rapid reemployment of claimants, and

(2) assisting employers retain skilled workers in order to rapidly recover from economic dislocations.

§815.28(a)(1)(E)(vi), Exemption from Work Search Requirements for Individuals who are Members in Good Standing of a Union with a Nondiscriminatory Hiring Hall

The Commission further proposes to amend §815.28 to explicitly exempt from the general work search requirements any UI claimants who are members in good standing of a union with a nondiscriminatory hiring hall since they are exempt from work registration requirements under §815.20(8)(B).

A hiring hall is best defined by its function which is to match workers and jobs. Traditionally, it is a physical location where employers seek workers and workers come to seek employment. Since 1934, Merriam-Webster has defined hiring hall more specifically as "a union-operated placement office where registered applicants are referred in rotation to jobs." The key elements of the hiring hall are a list of job assignments maintained by the union business agent, and a "daybook" listing of available employees. Most unions with hiring halls maintain the daybook where active members must sign, in person, at least once a week. Many also require a daily call-in. Generally, laid off workers sign the daybook to indicate their availability and, with some allowances for seniority or experience, are referred to new job assignments on a first come, first served basis. In effect, the labor organization performs ongoing work search and job placement activities on behalf of its members.

In many cases, exclusive contracts between labor and employer organizations require that workers supplied by the union complete necessary training, attain certain experience levels, or achieve other qualifying standards. To meet these contractual obligations, the labor organizations have established hiring halls, and members are generally required by their union, as a condition of membership, both to accept hiring hall referrals and to refuse employment offers which are not made through the union hiring hall.

Employers frequently provide members' insurance and/or retirement benefits through the union. The bylaws or dispatching rules of union hiring halls spell out the hall's purpose and procedure with respect to such benefits. Depending on the union, some members must work at least 1,000 to 1,500 hours per year to maintain insurance benefits and to qualify for a year of service toward retirement. Seeking employment with nonunion employers, and failing to seek work through the hiring hall according to union rules or bylaws could therefore cause members to lose their union membership, insurance, vacation, and pension.

The Commission's longstanding policy of exempting from work registration and work search requirements individuals who are members in good standing of a union with a nondiscriminatory hiring hall is grounded in federal and state law. In the Landrum-Griffin Act, 29 U.S.C. §151(d), 29 U.S.C. §401 and elsewhere, the U.S. Congress guaranteed workers the right to organize, set out structural standards for labor organizations, and required that mutual activities such as hiring halls must be respected. The Texas Labor Code §207.008(b), mirroring language of the Federal Unemployment Tax Act (FUTA), 26 U.S.C. §3304(5)(c), states that UI benefits may not be denied "to an otherwise eligible individual for refusal to accept new work if... as a condition of being employed, the individual is required to join a company union or to resign from or refrain from joining a bona fide labor organization."

In recognition of all of these factors, the Commission has historically exempted this classification of claimants from work search requirements. The Commission has previously determined that claimants who usually obtain work through a union meet the requirement of making an active, independent search for work if each of the following conditions is met:

(1) the claimant is a union member in good standing; and

(2) the union maintains a nondiscriminatory hiring hall, as that term is defined by the Landrum-Griffin Act. The Commission finds that these conditions warrant continued exemption from the work search requirements.

The Commission estimates that the number of claimants in this classification represent only 1.71 percent of all regular Texas UI claimants. Further, claimants who meet this exemption tend to collect benefits for fewer weeks than other claimants and are less likely to exhaust their benefits.

Although the Commission finds that an exemption is appropriate for these claimants, the Commission emphasizes that any UI claimant who is a member in good standing of a union with a nondiscriminatory hiring hall must maintain contact with and use the placement services of the hiring hall.

§815.28(a)(1)(E)(vii), Exemption from Work Search Requirements for Individuals Actively Engaged in Jury Service

The Commission proposes to amend §815.28 to explicitly exempt from the rule's requirements individuals performing jury service for a period of three days or longer, with such exemption to apply only to weeks in which the claimant is actively performing jury service.

The Commission has taken the position that to hold a claimant unavailable during a period of jury service would be to penalize the claimant for complying with the claimant's legal citizenship obligation. The Commission will not force a claimant to choose between receipt of unemployment benefits and violation of the claimant's statutory obligation to serve on a jury.

§815.28(a)(1)(F), Applicability of Work Search Requirements to Certain Classifications of Claimants

The Commission proposes to amend §815.28 to add a new subsection (a)(1)(F), clarifying that Work Search requirements shall apply to:

(a) recipients of state extended UI benefits, who are required to actively seek work under Texas Labor Code §209.043;

(b) recipients of federal extended unemployment benefits, except that if the federal legislation establishing such benefits or administrative directives for administering such benefits includes work search requirements, which are in conflict with those established by §815.28, the federal requirements or administrative directives shall apply; and

(c) individuals who are engaged in efforts to establish themselves in a self-employment venture.

Texas Labor Code §209.043, Requirement to Seek Work, provides work search requirements for claimants receiving Texas (state) extended unemployment benefits. In addition, some national legislation providing federal extended unemployment benefits has included work search requirements, which may conflict with the provisions of §815.28. Section 815.28 does not now specifically address the applicability of the rule to claimants receiving either state or federal extended benefits. The Commission amends the rule to clarify that the work search requirements apply to these claimants.

Similarly, the Commission has previously determined that the work search requirement under §815.28 does not exempt claimants who are establishing a self-employment venture for themselves. Again, the Commission amends the rule to explicitly provide that the requirements apply to these claimants.

The Commission's Appeals Policy and Precedent Manual currently includes a work search component at AA 160.05, "General Statement of Commission Policy on Work Search." The Commission intends that the amended rule once adopted shall supersede the General Statement of Commission Policy on Work Search contained in the Appeals Policy and Precedent Manual at AA 160.05. It also will supersede Appeal No. 2925-CA-77, which is digested in the Manual at AA 160.10 and at 415.05; Appeal Precedent Number 1994-CA-0581, digested in Appeals Policy and Precedent Manual at AA 370.10; and any other provisions in the Appeals Policy and Precedent Manual in conflict. The Commission intends to rescind the precedents in an open meeting.

§815.109. Payment of Contributions and Reimbursements.

The Commission proposes to amend §815.109(e), by re-lettering subsection (e) to (f) and subsection (f) to (g) and inserting a new subsection (e). This amendment clarifies when an additional tax resulting from a chargeback adjustment is due, and when interest will begin to accrue on any unpaid balance. The Commission intends that if, for example, an employer receives a notice of additional taxes due, which is dated March 15, the due date for payment will be May 1, the final date for payment without further penalty will be May 31, and interest will begin to accrue on June 1.

UI tax rates are calculated annually during the fourth quarter and are effective January 1 of the following year. Chargebacks are the primary component in an employer's experience rating, which in turn is the primary factor determining the employer's annual tax rate. Annual tax rates, including prior year tax rates, can be adjusted at any time during the year when chargebacks are adjusted as a result of an appeal of a UI benefit decision.

When a claimant is initially disqualified for benefits but appeals the decision and ultimately prevails, the employer's tax rate is recalculated based on benefits paid to that claimant. It is not unusual for the Commission to resolve such an appeal after the new year's tax rate notice has been mailed and the employer has already paid taxes under that new rate. Generally, each employer in the claimant's base period shares in the chargebacks proportionately according to the wages earned by the claimant from each employer. This is true unless a base period employer timely responds to the notice of chargeback and is not chargeable for the benefits based upon a Commission determination. However, when the employer is liable the chargebacks are posted to the employer's account for the quarter in which they occurred. The employer's annual tax rate is recalculated based upon the revised chargebacks.

Assessment of Interest. When the recalculated tax rate is higher than the original rate, the employer is notified of the increase and of the additional tax and interest due for each quarter affected. The interest is calculated retroactively, based on the original due date of the quarterly report. Moreover, the length of the appeal process sometimes causes the total period of adjustment, including the interest assessment, to encompass several quarters in prior years and to extend to the most recently filed quarter. This current policy on interest assessments can produce a financial burden for affected employers.

Due dates for payment of tax are set by §815.109(a) which states, in part, "contributions shall accrue quarterly and shall become due on the first day of the month following the calendar quarter. They shall be paid to the Agency on or before the last day of the month."

Exceptions to timely payment of tax due. Under §815.109(e), the Commission has provided for extensions of up to 60 days beyond the required due dates for payment of regular quarterly taxes. However, the rule does not speak directly to due dates in the situation described above, where the amounts of tax due (and interest charges) result from appeals decisions that occur considerably later than 60 days after the original quarterly due date.

Interest is charged on taxes not paid by due dates. The Texas Labor Code §213.021(a) states, in part "An employer who does not pay a contribution on or before the date prescribed by the commission is liable to the state for interest of one and one-half percent of the contribution for each month or portion of a month that the contribution and interest payments are not paid in full."

There is no specific provision in statute or Commission rule addressing the Commission's ability to accept payment in chargeback adjustment cases without assessing interest. However, the Commission has often granted employers in such cases an additional 30 days from the notice to pay without assessing interest. The proposed amendment will clarify Texas Workforce Commission's business practice and preserve it in rule. The proposed amendment also will grant employers more flexibility by making the due date contingent upon the date the Agency mailed the statement or letter notifying the employer of the change in tax rate and additional tax due, rather than a fixed 30-day deadline.

Coordination with Stakeholders: Prior to proposing these rule amendments, the Commission circulated a policy concept paper outlining the changes to the Board chairs, members and executive directors, and the Texas Association of Workforce Boards Policy Committee requesting feedback on the draft policy changes. As §815.109 does not directly affect Boards, the Commission determined that the concept review phase could be expedited. In addition, the concept for amendments to §815.28 and §815.15 were discussed on March 19, 2004, in a conference call with Board Executive Directors and staff. While no written remarks were submitted, clarification of the Boards' roles in the work search process and in other areas was requested and provided.

Randy Townsend, Chief Financial Officer, has determined that for each year of the first five years the amendments will be in effect, the following fiscal statements will apply:

There are no additional estimated costs to the state and to local governments expected as a result of enforcing or administering the amendments;

There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the amendments;

There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the amendments;

There are no foreseeable implications relating to costs or revenue of the state or local government as a result of enforcing or administering the amendments; and

Mr. Townsend has also determined that there is no adverse economic effect on small businesses or individuals as a result of enforcing or administering the amendments.

LaSha Lenzy, Director of Unemployment Insurance and Regulation, has determined that for each year of the first five years the amendments are in effect, the public benefits anticipated as a result of clarifying the rules are to:

(a) provide improved service to employers, UI claimants, and the people of Texas;

(b) assist employers in retaining trained workers; and

(c) stabilize local economies by helping employers quickly recover from short-term dislocations.

Mark Hughes, Director of Labor Market Information, has determined that the proposed amendments would positively impact private employment by facilitating employers' efforts to obtain and retain qualified workers. While the proposed amendments are intended in part to stabilize local economies and facilitate economic recovery by local businesses, the impacts are relatively minor in broader economic context. Mr. Hughes does not expect any significant impact upon overall employment conditions in the state as a result of the proposed amendments.

Comments on the proposal may be submitted to John Moore, Office of the General Counsel, Texas Workforce Commission, 101 East 15th Street, Room 608, Austin, Texas 78778-0001, (512) 463-3041. Comments may also be submitted via fax (512) 463-2220 or e-mail at John.Moore@twc.state.tx.us. Comments must be received by the Commission within 30 days from the date this proposal is published in the Texas Register . A Public Hearing will be conducted if requested under Government Code §2001.029.

Subchapter B. BENEFITS, CLAIMS AND APPEALS

40 TAC §815.15, §815.28

The amendments are proposed under Texas Labor Code §301.0015 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of services and activities.

The amendments affect Texas Labor Code, Title 4.

§815.15.Parties with Appeal Rights.

(a) - (b) (No change.)

(c) An employer may file an appeal from a determination that affects a claimant's entitlement to benefits if the employer is a party of interest to the determination. The paragraphs [ Paragraphs (1) - (5) ] of this subsection are situations in which the Agency shall treat an employer as a party of interest in a specific proceeding. Only one employer shall be a party of interest to a proceeding.

(1) - (5) (No change.)

(6) If an employer has requested a waiver under §815.28(a)(1)(E)(v) of this subchapter and the Agency Executive Director denies the waiver, the employer shall be a party of interest to any benefits appeal where ineligibility results from that denial.

§815.28.Work Search Requirements.

(a) Purpose. The purpose of this rule is to describe the work search requirements and process that must be met for claimants to continue to receive unemployment compensation benefits. A claimant is required to register for work, to actively seek work and be available for work, as well as accept suitable work. The rule also describes the process to be utilized by Local Workforce Development Boards (Boards) when formulating the numerical weekly work search contact requirements.

(1) A claimant shall be considered available for work during the time the claimant is making a reasonable search for suitable work as defined by this section.

(A) - (D) (No change.)

(E) This section [ rule ] shall not apply to:

(i) (No change.)

(ii) individuals participating in Agency approved or Trade Act training, §207.022 and §207.023 of the Act; [ or ]

(iii) individuals on temporary layoff with a definite date to return to work that is within eight weeks or less from the date of layoff;

(iv) individuals on temporary layoff with a definite return to work date that is within eight to 12 weeks from the date of layoff, provided the exemption from work search requirements is explicitly requested in writing by the separating employer;

(v) individuals on temporary layoff with a definite return to work date that is more than 12 weeks from the date of layoff provided that a waiver from work search requirements is requested by the separating employer and granted by the Agency Executive Director. The Executive Director's decision is subject to review in any benefits appeal where ineligibility results from the decision. The requesting employer is a party of interest to any such appeal, as described in §815.15(c)(6) of this subchapter;

(vi) individuals who are members in good standing of a union that maintains a nondiscriminatory hiring hall, as that term is defined by the Landrum-Griffin Act, and who maintain contact with and use the placement services of the hiring hall;

(vii) individuals who perform jury service for a period of three days or longer, during the weeks in which the individual is actively performing jury service; or

(viii) [ (iii) ] individuals who are otherwise exempted by law.

(F) This section shall apply to all claimants unless specifically exempted, including:

(i) recipients of state extended unemployment benefits, who are required to actively seek work under Texas Labor Code §209.043;

(ii) recipients of federal extended unemployment benefits, except that if the legislation establishing such benefits or administrative directives for administering such benefits include work search requirements, which are in conflict with those established herein, the federal requirements or administrative directives shall apply; or

(iii) individuals who are engaged in efforts to establish themselves in a self-employment venture.

(2) (No change.)

(b) - (e) (No change.)

(f) Local Boards shall have the flexibility within the guidelines provided in this section to formulate the appropriate minimum number of weekly work search contacts for their respective workforce area, using appropriate guidelines to be developed in consultation with Agency [ agency ] staff, and shall maintain written documentation. Boards shall review the minimum number of weekly work search contacts for each workforce area at least once per year on a date to be determined by the Agency.

(g) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 12, 2004.

TRD-200403195

John Moore

General Counsel

Texas Workforce Commission

Earliest possible date of adoption: June 27, 2004

For further information, please call: (512) 463-2573


Subchapter C. TAX PROVISIONS

40 TAC §815.109

The amendments are proposed under Texas Labor Code §301.0015 and §302.002, which provide the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of services and activities.

The amendments affect Texas Labor Code, Title 4.

§815.109.Payment of Contributions and Reimbursements.

(a) - (d) (No change.)

(e) Additional tax resulting from a chargeback adjustment is due on the first day of the second month following the month in which the Agency mailed the statement or letter notifying the employer of the change in tax rate and additional tax due. Amounts due from such chargeback adjustments shall be paid and must be received by the Agency on or before the last day of this second month.

(f) [ (e) ] When good cause is shown, the Agency may extend the due date for the payment of contributions or reimbursements ; [ , ] however, the extension may not exceed 60 days and shall not be effective unless the extension is authorized in writing by the Agency. In the event the Agency for good cause shown extends the due date for payment of contributions or reimbursements the payments shall be made to the Agency on or before the 30th day following the extended due date.

(g) [ (f) ] An agent or other entity making a payment on behalf of 20 or more employers shall furnish an allocation list on magnetic or electronic media using a format prescribed by this Agency, unless the Agency has approved another format and method in writing. This list shall be furnished with the remittance, and the remittance shall be allocated to the credit of the employers according to the order in which the employers appear on the list.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 12, 2004.

TRD-200403196

John Moore

General Counsel

Texas Workforce Commission

Earliest possible date of adoption: June 27, 2004

For further information, please call: (512) 463-2573